Saturday, September 24, 2011

Here We Go - This Is Why They Wanted To Annihilate The Metals This Week

G20 sources: all efforts behind the scenes (by G20 members) are now going into recapitalising banks, preparing economies for default.

Zerohedge posted this.  Here's the LINK
So it sounds like Greece will be allowed to default and the bigger news regarding gold/silver is that the ECB is prepared to print plenty of money of keep the banking system from collapsing.  Sort of like what happened here in 2008.  That's why the LBMA raised margins on OTC gold forwards by substantial margin.  They wanted to "flush" the market ahead of this.  Ultimately this is uber-bullish for the metals.  Don't let them shake you out of your positions.  An even better move would be to man-up and buy even more Monday and save room to add more if they take it lower.
I was actually told by a friend that some big news that would explain the metals hit would surface either this weekend or Monday/Tuesday.  He wouldn't give me details over the phone.  His remark on last week's action:  "who cares where they take the metals on the downside, six months from now they could be double where they are now....


  1. Dave,

    Watch these Mike Maloney videos on 2008 crash. The same old trick, and more importantly the only trick left for the central bankers.

  2. Who's in your pocket?

    Does money corrupt politicians?

  3. Do you think the margin hikes are already baked into prices?

  4. I deleted my Facebook account

    Broadly speaking, our generation seems confused as to how the world went to shit while we sat around using the computational power of a sun to friend and pirate-poke each other into oblivion.

    Facebook is calling our bluff. They are dismantling the services that made their site valuable, and selling us out in ways that make our lives worse. And they know that we can’t or won’t leave.

    The final straw for me was when they said that if I didn’t agree to link my interests (music, books, etc.) to the official pages for those interests (advertisements), I could no longer have interests displayed on my profile.

    “Max doesn’t like any books.”

    “Max has no interests.”

    Here’s what you can look forward to in Facebook’s coming years:

    Perhaps it’s worth explaining why privacy matters to me in the first place. It’s not like I’m doing anything wrong or illegal on Facebook. I have nothing to hide. Why should I care? Bruce Schneier:

  5. Dave. Where can I contact you by email?

  6. Physical Gold and Silver are finite.
    Paper Gold and Silver are infinite.
    Physical Gold and Silver are actual.
    Paper Gold and Silver is conceptual.

    The act of trying to make a concept control the actual is a sign of desperation.

    Desperate men do desperate things.

  7. I am holding long and solid on metals - stocks, etfs and physical. Gold, silver, copper, uranium, platinum and palladium; it's 60% of my portfolio, with 30% in oil and 10% in cash.

    In other words, I'm betting EVERYTHING.

  8. Margin requirements on the way down too. Give me a break.

  9. (Dave)

    silvergold: my email address is linked in the "About Me" section of this blog if you scroll down on the lower right.

  10. do you mean in the last quote: six months from now rather than six months ago?

  11. Another capitalist??? there anything in that box?

    In Galling, Pathetic Whine, Deutsche Bank CEO Warns Against Opening "Pandora's Box"

    Ackermann is a Liar

    There is no polite way to say it so I may as well be blunt: Josef Ackermann is a liar.

    Banks agreed to the 21% haircut in July for one reason and one reason only: It was nowhere near "fair" and banks knew they got off easy.

    The only "fair" proposal is for those who make stupid decisions to pay full price for those decisions.

    Ackermann wants taxpayer to bail him out. Screw Ackermann. And if Deutche Bank goes under as a result, Ackerman and the entire board should be fired. Indeed the entire banking system would be better off if failed bank executives get shown the door and their pensions set to zero when banks fail.

  12. James Turk: “We are Looking at Another Lehman”

    So you are getting these markets completely spinning out of control, waiting for some kind of resolution. The fact that they (central planners) are trying to keep this broken system going is what’s creating all of this volatility in the market place. It feels a lot like 2008, in the days before the Lehman (collapse) and I think we are probably going to see another Lehman here, Eric.”

  13. ..and you thought when they stopped m3 things went awry??? wtf is this about?

    Fed commissions Social Listening Platform to monitor all mentions of
    Fed on web and media

    Here Comes FIATtackWatch: Ben "Big Brother" Bernanke Goes Watergate,
    Prepares To Eavesdrop On Everything Mentioning The Fed

  14. Ain't this a hoot????

    How state lawmakers pump up pensions in ways you can't

    Since January 2005, Thomas, a Republican, has made $148,435 more than a legislative salary would have paid, his financial-disclosure records show. At least four other South Carolina lawmakers are getting pensions instead of salaries, netting an extra $292,000 since 2005, records show.

    Pension perks aren't unique to legislators in South Carolina.

  15. Inhuman Volatility...

    September 26, 2011 3:11 AM

    Now, everything has changed. Earnings reports and valuations are meaningless. Currency and interest rate movements are arbitrary as you never know when a central bank will intervene. Even worse, the broader equity markets are in pandemonium. In essence, only two data points matter any longer: When will QE3 start? Will the Germans or the Greeks blink first in their game of brinksmanship?

    I cannot recall a time in trading when the world markets hinged on just two data points. However, these two will set the precedent for the next few years of economic activity around the world. If you get it wrong, you are positioned wrong for the next few years. For this reason, every bit of news-flow is meaningful and hundreds of billions of capital are re-positioned based on every data point.

    At first, European leaders thought that this was a one-time event. Now everyone in Europe understands the joke. The Greeks NEVER intend to repay these debts, but the European leaders are too scared about the consequences of stepping back. If they do, what will the rest of the insolvent nations do? If Greece defaults it would be catastrophic. If Spain and Italy go, it will take the whole financial system down with it.

    Suddenly, we have a new paradigm. Markets cannot price in binary events when the outcomes are this extreme. It’s the reason that we can have 200 point moves in gold and 30% 2-day moves in silver. The price-discovery mechanism is now broken because the risks of being wrong are simply too high.

  16. Imagine if this pos became treasury secretary?

    International Tensions Soar: Jamie Dimon, CEO of JP Morgan, Accuses Bank of Canada Governor Mark Carney of "Juvenile Delinquency"

    Jamie Dimon of JPMorgan Chase launched a tirade at Mark Carney, Bank of Canada governor, in a closed-door meeting in front of more than two dozen bankers and finance officials, underscoring mounting tensions between bankers and officials over financial regulation.

    The atmosphere was so bad after the meeting that Lloyd Blankfein, chief executive of Goldman Sachs and head of the Financial Services Forum bankers’ group which arranged the session, emailed the central banker to try to smooth relations, people familiar with the matter said.

  17. Wonder where the supply will come from?

    Monday, September 26, 2011
    China 'launches gold vending machine'
    China with its size and growing wealth will consolidate a good portion of the world's gold supply.

    Headline: China 'launches gold vending machine'

  18. Everyone is so negative on gold and silver now, that is why I am buying. I heard this all before back in 2008 about deflationary collapse, and then the PM's rallied huge.

  19. It’s Much Worse than 2008

    This is not about you and me or the economy. This is about power, and the folks that have it want to keep it. They will not keep the power if the global economy folds and gets sucked into a black hole. For those in power, there is only one answer to the enormous debt suffocating the world economy, and that is to pay some of it off with freshly minted fiat currency. Simply put, central banks will print to retain power. Hold on to your insurance because the financial calamity we face is much worse than 2008!’s-much-worse-than-2008/

  20. How do you know if a "bad model" with access to infinite capital through a fed siv or conduit couldn't force prices where "they" think they should be? Wouldn't this force people to change their perceptions about reality?

    Trading floors were once the preserve of adrenalin-fuelled dealers aggressively executing the orders of brokers who relied on research, experience and gut instinct to decide where best to invest.

    Long ago computers made dealers redundant, yet brokers and their ilk have remained the masters of the investment universe, free to buy and sell wherever they see fit.

    But the last bastion of the old order is now under threat.

    Investment decisions are no longer being made by financiers, but increasingly by PhD mathematicians and the immensely complex computer programs they devise.

    Fundamental research and intuition are being usurped by algorithmic formulae. Quant trading is taking over the world's financial capitals.